What are the benefits of life insurance?

Life insurance provides cover if you die or become terminally ill during the length of your policy. It’s a safety net to give your family some financial support after you’re gone. And it could help them pay off the mortgage or cover living expenses. However, there are a few things to remember. Your cover will end if you don’t pay your premiums, the cover amount is only paid out once and there’s no cash in value at any time.

Find out more about the basics of life insurance in our beginner’s guide - What is life insurance?

You can also find out what some of the key terms mean in our life insurance glossary.

Life insurance helps to give your family some financial protection if you’re no longer around to look after them. 72% of Brits say they're afraid their loved ones won't manage financially for more than a year without them*. So life insurance can help to provide peace of mind.

Tesco Life Insurance is provided by Aviva, who will also administer your policy.

We offer two types of cover to choose from:

Find out more about our policies in our guide - What does life insurance cover?

Everyone has different financial needs, so it’s worth thinking about the benefits life insurance could bring to your family. To help you, here are some of the reasons you might want to get life insurance.

One of the biggest reasons to have life insurance is to leave your family something once you’re gone. A payout can help replace your income. So they can pay off monthly expenses and living costs or save for things like university fees.

With Family Protection, you can choose the cash lump sum you want to leave your loved ones. You can also choose how long you want the policy to last. And your cover and premiums will stay the same throughout the term.

You can also choose to protect your policy from the effects of inflation. Known as increasing cover, if you choose this your cover and your premiums will increase each year in line with the Consumer Prices Index (CPI).

Family Protection offers cover of up to £5million with policy terms of 5 to 50 years. You can also choose a single or joint policy, so you can make the right choice for you.

Life insurance can also help your family pay off the mortgage. Mortgage Protection is most common to get if you’re buying a home with a partner. What’s more, if you take out cover when buying a house, Aviva will give you free life insurance for up to 90 days.

30% of adults in the UK say they'd have to sell their home if their partner died unexpectedly*. Life insurance offers reassurance for your family, so they can stay in the family home after you die.

Find out more about life insurance and mortgages in our guide - Do you need life insurance for a mortgage?

Having a lump sum available can help your family cope with any unexpected costs. Whether it’s car repairs, boiler breakdowns or vet bills, you can rest easy knowing your loved ones will have a pot they can dip into. That’s especially true if savings are low. In fact, 80% of Brits say they have no savings set aside for emergencies or financial security at all*.

Providing a safety net helps to prepare for any surprises and avoid borrowing money to get by.

If you’re unsure how much cover you need, find out more in our guide - How much life insurance do I need?

Life insurance can also cover other costs after you’re gone, like paying for your funeral. The cost of a funeral might surprise you. Planning ahead will help to support your loved ones during this difficult time. And it’ll help you work out how much cover you need.

You can choose to leave enough cover to help pay for your funeral. Or you can leave a lump sum to your loved ones they can put towards the funeral and other expenses.

Tax can be a big worry if you’re looking to leave money to your loved ones. If you get a life insurance payout, you won’t have to pay capital gains tax or income tax on it. But you might need to pay inheritance tax, unless it’s been placed in a trust.

If your life insurance policy is in a trust, you’ll be able to choose:

Putting your policy in a trust also means it won’t count as part of your estate. So any money is usually exempt from inheritance tax.

You should get independent legal and financial advice before placing your life insurance policy into a trust.

You can also find out more at our Life Insurance FAQs.

One of the biggest benefits of life insurance is the peace of mind it brings. 29% of Brits say "their partner’s inability to manage alone” is their biggest financial worry*. Taking steps to make sure your loved ones have a financial safety net helps put you in control and your mind at ease.

It also ensures your family don’t have to cut back on costs when you’re no longer around. Whether it’s the weekly food shop, family holidays or little luxuries, life insurance can help to maintain their lifestyle.

Find out more about the types of life insurance we offer and discover the right policy for you with our guide - Types of life insurance explained.

You can get life insurance at any time, but it’s worth bearing in mind that the cost tends to rise as you get older. Many people get life insurance when they buy their first home, get married or have a child. That way, they make sure they’re looking after any dependents they have. Many people have group life insurance but you can lose this at anytime if you change jobs, are made redundant or if your employer cancels this benefit.

At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.

As well as your Tesco benefits, you’ll also get health and wellbeing services with the Aviva DigiCare+ app, provided by Square Health and other selected partners. Aviva Digicare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time.

Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating for life insurance from Defaqto and pay out on 98.8% of claims**.

*All figures are taken from an online survey conducted by WALR on behalf of Tesco Insurance between 11 and 25 July 2025. The survey included a sample of 2,008 UK consumers under 55 years of age.

**Aviva 2025 Claims report, covering claims made across all life insurance policies in 2024